The Proliferation of Sanction Regimes: Impact on the Global Financial System

The proliferation of sanction regimes has reshaped international relations and the global financial landscape. The United Nations rediscovered sanctions with the end of the Cold War and both the United States and the European Union have increasingly resorted to them ever since. Recently, other states such as Russia and China have also started to develop sanctioning policies, including retaliatory sanctions, while striving to set up alternative financial infrastructures to mitigate the impact of Western sanctions. The consequences of the evolving sanction regimes and the related countermeasures extend beyond their immediate targets, significantly influencing the global financial system. The interaction between sanctioned nations and their allies creates complex trade networks, often diluting the intended impact of sanctions and leading to unexpected ramifications for both sanctioning and sanctioned countries.